Bureaucrats pass politicians on pay

The first of six large pay increases for top public servants came into effect yesterday along with the new pay rates for federal politicians after the Remuneration Tribunal signed off the official determinations under new powers this week.

The secretary of the Department of the Prime Minister and Cabinet,
Ian Watt
, gets an immediate 14.9 per cent pay rise from total pay of $539,580 to $620,000, with further rises to $825,000 in July 2014, including superannuation.

It will take him until then to catch up to the current pay of the chairman of the Australian Prudential Regulation Authority,
John Laker
, whose set rate is $800,000.

Both outstrip the pay of Prime Minister
Julia Gillard
, who, as announced in December, receives $481,000 a year, up from $367,000. Backbenchers will receive $185,000.

The mandarins’ and senior statutory officers’ phased rises far exceed the 3 per cent a year the government has set for the rest of the Australian Public Service.

The secretaries have a new pecking order that bears no relation to the seniority of cabinet ministers.

The new four-tier classifications, instead of two, give the secretary of Prime Minister and Cabinet top billing and pay on Level 1A, followed by Treasury on Level 1B ($805,000 by July 2014). Their pay is determined by the tribunal. Defence, which previously shared top billing with PM&C and Treasury, has been demoted to the third tier.